S.B. No. 1558 amends the Civil Practice and Remedies Code and the Family Code to establish specific liability protections for nonprofit entities contracted with the Department of Family and Protective Services or a single source continuum contractor that provide community-based care or child welfare services. The new Section 84.0068 outlines that these entities cannot be held liable for damages resulting from the actions of their employees, volunteers, or caregivers, provided they have conducted timely criminal background checks, confirmed the eligibility of personnel, reported misconduct, taken appropriate administrative actions, and ensured training in child abuse prevention and reporting. However, the bill allows for vicarious liability if the claimant can demonstrate that the entity was not in substantial compliance with these requirements at the time of the incident.

Additionally, the bill modifies Section 264.170 of the Family Code to clarify that nonprofit entities providing these services are considered charitable organizations under Chapter 84, which governs liability. The limitations on liability apply only to actions occurring within the scope of their contracts and require that the entities maintain the necessary insurance coverage. The provisions of this act will take effect on September 1, 2025, and will only apply to causes of action that accrue on or after that date.

Statutes affected:
Introduced: Family Code 264.170 (Family Code 264)
Senate Committee Report: Family Code 264.170 (Family Code 264)
Engrossed: Family Code 264.170 (Family Code 264)
House Committee Report: Family Code 264.170 (Family Code 264)
Enrolled: Family Code 264.170 (Family Code 264)